This information is for the use of licensed financial advisers and other wholesale clients only.
Key points
Diversified ETFs have become an increasingly popular route for investors to access professionally constructed portfolios in a single trade. By combining multiple asset classes and thousands of underlying securities within one fund, they can offer a simple and scalable alternative to constructing and maintaining a multi-asset portfolio.
Betashares has expanded its Diversified ETF range to provide a simple, low-cost way to implement strategic asset allocation across a range of investor risk profiles.
Introducing three new diversified ETFs
| Ticker | Fund | Risk profile | Growth / Defensive | Management Fee |
|---|---|---|---|---|
| DVHG | Betashares Diversified High Growth ETF | High Growth | 90% Growth / 10% Defensive | 0.19% p.a. |
| DVGR | Betashares Diversified Growth ETF | Growth | 75% Growth / 25% Defensive | 0.19% p.a. |
| DVBA | Betashares Diversified Balanced ETF | Balanced | 60% Growth / 40% Defensive | 0.19% p.a. |
Together with the existing Betashares Diversified All Growth ETF (ASX: DHHF), the range now provides advisers with diversified portfolio options spanning balanced through to all growth profiles.
A diversified portfolio in a single trade
Each of the three new diversified Funds provide an all-in-one, professionally constructed portfolio using broad-market, passive ETFs as the underlying building blocks. Through a single ASX trade, the Funds provide exposure to approximately 2,500 Australian and global companies and 12,000 bonds, with broad diversification across asset classes, regions and sectors. This can reduce the administration associated with managing multiple holdings, while providing either a simple standalone solution or a passive core to which smart beta or active strategies can be added.
Given asset allocation is one of the key drivers of long-term portfolio returns, getting the strategic mix right is critical. The diversified funds draw on the expertise of the Betashares Investment Committee to set each Fund’s strategic asset allocation, with rules-based rebalancing to maintain the intended risk profiles over time. This disciplined framework is implemented using passive ETFs, which have shown strong long-term performance by capturing broad-market returns.
By combining these exposures across major asset classes, the Funds aim to provide a strong foundation for long-term portfolio outcomes, while maintaining a management fee of 0.19% p.a., the lowest cost available across multi-asset diversified funds in Australia.
Strategic Asset Allocation
| Category | Asset Class | Ticker | DVBA Balanced | DVGR Growth | DVHG High Growth |
|---|---|---|---|---|---|
| Growth | Australian Equities | A200 | 23.00% | 28.75% | 34.50% |
| International Equities | BGBL | 20.75% | 25.75% | 31.50% | |
| Currency Hedged International Equities | HGBL | 10.25% | 13.00% | 15.50% | |
| Emerging Market Equities | BEMG | 3.50% | 4.50% | 5.00% | |
| Currency Hedged Listed Infrastructure | TOLL | 2.50% | 3.00% | 3.50% | |
| Growth total | 60.00% | 75.00% | 90.00% | ||
| Defensive | Cash | AAA | 5.00% | ||
| Australian Fixed Income | COMP | 21.00% | 15.00% | 6.00% | |
| International Fixed Income | WBND | 14.00% | 10.00% | 4.00% | |
| Defensive total | 40.00% | 25.00% | 10.00% |
Asset allocations will be rebalanced back to SAA target weights if, at quarter end, the allocation to an asset class deviates from the SAA by more than 2%. *
- BEMG is subject to a more regular monitoring regime, whereby its allocation will be monitored daily and, if it exceeds the 2% deviation threshold from its SAA at any point, may be rebalanced back outside of the quarterly cycle.
AAA = Betashares Australian High Interest Cash ETF; COMP = Betashares Bloomberg AusBond Composite ETF; WBND = Betashares Global Aggregate Bond Currency Hedged ETF; A200 = Betashares Australia 200 ETF; BGBL = Betashares Global Shares ETF; HGBL = Betashares Global Shares Currency Hedged ETF; BEMG = Betashares MSCI Emerging Markets Complex ETF; TOLL = Betashares FTSE Global Infrastructure Shares Currency Hedged ETF.
The taxman cometh
Recent changes to Australia’s capital gains tax (CGT) framework have brought greater focus to tax-efficient portfolio implementation. From 1 July 2027, the existing 50% CGT discount will be replaced by inflation-based indexation, alongside a minimum 30% tax rate on real capital gains for affected investors.
This is one of the key structural benefits of the new diversified funds, which have been designed to support improved after-tax outcomes through:
- An ETF-only structure. Utilising ETFs as the sole underlying instead of unlisted managed funds comes with key benefits. When an ETF trades on the ASX, this doesn’t directly create turnover in the ETF’s underlying portfolio and cause realisation of capital gains. Where a market maker does redeem ETF units, any associated capital gains can be streamed to them, ensuring investors don’t inherit the tax consequences of that redemption.
- Internal netting of capital gains and losses. When the time comes for investors to sell, the fund-of-funds structure allows gains and losses across the underlying portfolio to be offset within the diversified ETF. This is increasingly relevant under the new CGT indexation framework, where real losses on individually held assets may not offset indexed gains in the same way.
- Tax-aware rebalancing. The rebalancing strategy seeks to minimise unnecessary portfolio turnover and the realisation of capital gains, while keeping each Fund aligned with its target asset allocation and intended risk profile.
- Tax-efficient currency hedging. The currency-hedged underlying ETFs each have 100% of assets elected into TOFA. This can allow certain hedging gains to be deferred and treated on capital rather than income account, potentially reducing tax drag and supporting improved after-tax outcomes.
- Australian-domiciled underlying ETFs. This can provide more efficient treatment of relevant foreign withholding tax credits and avoid some of the additional tax leakage that can arise through offshore-domiciled fund structures.
Please note that Betashares is not a tax adviser. This information should not be construed or relied on as tax advice and investors should obtain professional, independent tax advice before making an investment decision.
Risk profiles to suit your objectives
In this section we illustrate performance characteristics of diversified investing strategies, using simulated historical performance of four diversified portfolios ranging from balanced to all growth risk profiles over the period from 31 December 2010 to 30 June 2026. It is based on certain assumptions, set out in the ‘Important information’ section at the end of this document. It is provided for illustrative purposes only and is not representative of actual fund performance. Actual outcomes may differ materially. It is not a recommendation to make any investment or adopt any investment strategy.
Simulated past performance is not indicative of future performance of any fund or strategy.
| Diversified Balanced Strategy | Diversified Growth Strategy | Diversified High Growth Strategy | Diversified All Growth Strategy | |
|---|---|---|---|---|
| 1Y (%) | 9.03 | 10.87 | 12.55 | 13.17 |
| 3Y (% p.a.) | 10.52 | 12.28 | 13.99 | 15.11 |
| 5Y (% p.a.) | 6.38 | 7.82 | 9.37 | 10.63 |
| 10Y (% p.a.) | 7.56 | 9.00 | 10.40 | 11.83 |
| Since Inception (% p.a.)* | 8.05 | 9.19 | 10.24 | 11.16 |
| Volatility (% p.a.) | 6.53 | 8.16 | 9.90 | 11.06 |
| Max drawdown (%) | -18.95 | -23.38 | -27.80 | -28.55 |
Source: Bloomberg, Betashares. Data from 31 December 2010 to 30 June 2026. Refer to the “Important Information” section below for further information and key assumptions. This information is provided for illustrative purposes only and is not representative of actual fund performance. Actual outcomes may differ materially. The information is not a recommendation or offer to make any investment or to adopt any particular investment strategy. Simulated past performance is not indicative of future performance of any fund or strategy.
*Simulated backtest inception date is 31 December 2010
The expanded Betashares Diversified ETF suite provides a range of options designed to align with different investor objectives, timeframes and risk/return profiles. Simulated historical strategy performance shows how each risk profile captures market returns, but as exposure to growth assets increases, so too does the long-term return potential, accompanied by higher volatility and deeper drawdowns.
This allows investors to select an allocation consistent with their desired growth profile and tolerance for risk, from more balanced exposures with a greater defensive allocation through to an all-growth portfolio targeting higher long-term capital growth.
Portfolio applications
The diversified range can support a number of implementation methods:
Core portfolio anchor
Can provide robust portfolio foundations by capturing broad market returns across asset classes, with scope to add smart beta or active strategies where outperformance potential is sought.
Emerging wealth clients
Credible investment options for clients whose balances may not justify a highly customised portfolio; Can help advisers engage the next generation before a major wealth transfer occurs, or where assets are being transferred across generations and beneficiaries have different levels of investment experience.
Superannuation portfolios
A potential implementation solution within superannuation, where low cost and tax efficiency will remain important portfolio considerations.
Outsourced asset allocation
Allocations to selected asset classes can be outsourced to the Betashares Investment Committee, while retaining discretion over the remainder of the portfolio.
Non-platform clients
Tax reporting can be simplified for non-platform clients by using all-in-one holdings, rather than multiple line items across the underlying exposures.
Investment Implementation
For more information on each ETF, please visit the respective fund page: